Mushrooming Use of PV Modules Driving Solar Encapsulation Materials

The surging use of photovoltaic (PV) modules, that convert solar energy into electrical energy via solar cells, is driving the demand for solar encapsulation materials. Moreover, with the rising popularity of solar energy, due to its eco-friendliness and economic viability, many countries are augmenting their PV module production capacities. This is, in turn, making solar material producers increase their production capacities. For example, as per the China Photovoltaic Industry Association (CPIA), the solar panel production capacity in China increased from 48 gigawatt (GW) in 2016 to 110 gigawatt (GW) by 2020.

Besides, the growing public awareness about the various benefits of solar cell technology is also driving the demand for solar encapsulation materials across the world. This technology helps utilities companies cater to the energy demands of both commercial and private establishments. In addition to this, with the rising public awareness about green construction, many people are focusing on sourcing energy from solar power, on account of its various benefits such as lower maintenance costs and the availability of state tax credits.

As a result, many investors across the world are making huge investments in the development of solar PVs, which is consequently creating lucrative growth opportunities for the players operating in the solar encapsulant market. Due to these factors, the market revenue will surge from $1,036.0 million in 2017 to more than $4,555.4 million by 2023. Furthermore, the market is expected to progress at a CAGR of 28.4% from 2018 to 2023.

Across the world, the demand for solar encapsulation materials was found to be the highest in the Asia-Pacific (APAC) region during the last few years, and this trend will continue in the coming years as well, as per the estimates of the market research company, P&S Intelligence. This is attributed to the surging solar module production capacities of major manufacturers in the region. As per the Energy Trend, the global PV installation production capacity stood at 70.3 GW in 2017. Out of this, China had a share of 31%.

Hence, it can be safely said that the demand for solar encapsulation materials will boom in the forthcoming years, primarily because of the growing demand for solar energy across the world.

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